RaceTrac to Acquire Sandwich Chain Potbelly for $566 Million

RaceTrac Acquires Potbelly: RaceTrac has agreed to purchase sandwich chain Potbelly Corp for approximately $566 million, marking a rare instance of a convenience store operator acquiring a restaurant brand.

Financial Details and Market Reaction: The acquisition involves a tender offer of $17.12 per share, with Potbelly's stock rising over 30% following the announcement, reflecting a 47% premium over its recent trading average.

Industry Context: This deal is notable as convenience store chains typically engage in franchising rather than outright acquisitions of restaurant brands, potentially influencing future transactions in the industry.

Company Backgrounds: RaceTrac operates over 800 convenience store locations across 14 states, while Potbelly, founded in 1977, has over 445 locations and more than 105 franchises in the U.S.